C O M P A N YO V E R V I E W

Argos Pioneer of modern distributionWritten by: Sam Jermy Produced by: Richard Durrant

3

4

ARGOS

Argos has become a pioneer of modern distribution by being the first company in the UK and Ireland to order new gas-

powered Euro 6 articulated trucks. Now the online and high street retailer, with 755 stores and more than 96 percent of the population within 10 miles of a store, is set to capitalise on being a market frontrunner.

Partly in a bid to cut down carbon emissions throughout the organisation, from the type of vehicles used to general energy consumption, five new environmentally friendly trucks were ordered from Swedish commercial automotive manufacturers, Scania.

Complying with Euro 6, Europe’s latest clean exhaust emissions standard, the vehicles can run completely off biomethane gas, and release up to 70 percent less carbon dioxide compared to their diesel counterparts. 

David Landy, Argos Fleet Manager, said: “These trucks offer a glimpse into the future of the UK haulage industry, and as one the UK’s biggest retailers selling around 50,000 different products, we’re delighted to be leading the way in getting products into our stores and customers’ hands in an environmentally friendly way.”

The new gas trucks can travel up to 350 kilometres without refuelling, and are now based at Argos’ Magna Park, Lutterworth distribution centre.

The introduction into service of these vehicles also represents a major milestone in a project created by Innovate UK (formerly Technology

Leading digital retailer Argos has continued to move forward by coupling energy efficiency with optimum delivery frequency

One of Argos’ many

loading bay areas

www.argos .co .uk 5

ARGOS S U P P LY C H A I N

Strategy Board) to assess the benefits of gas to the UK haulage industry.

A key aim of the project has been to introduce gas-powered vehicles into service at Magna Park in the run-up to a publicly-accessible gas refuelling station scheduled to open on site later this year according to CNG Services, which leads the project in collaboration with Gasrec, Argos, DHL Supply Chain, Culina Logistics and Eddie Stobart.

It is reported that the introduction of Argos’s new gas-powered Scania trucks will be transformational in terms of carbon dioxide emissions and their impact upon air quality in the coming years. Many other companies in the supply chain industry are expected to

Aerial shot of Magna Park

Phil HullDistribution Director

David LandyArgos Fleet Manager

Key Personnel

6 M a y 2 0 1 5

ARGOS

5:00am Amsterdam

3:30am Moscow

3:00pm London

the sense of logistics

P&O Ferrymasters knows how important it is to deliver

your cargo on time, to the right place and in perfect

condition. Your business depends on it and so does our

reputation as a market leader in the provision of integrated

transport solutions for the European industry. Our team of

530 experienced professionals operate from 22 strategic

locations across twelve European countries. They all share

this same customer-focused philosophy and are dedicated

to providing a fi rst class service to all our customers.

This philosophy and experience is complemented by our

unrivalled and increasingly important contract logistics

and freight management solutions, pioneering intermodal

operations, advanced information technology infrastructure

and our own modern and extensive fl eet.

That’s why it makes sense to choose P&O Ferrymasters for

all your supply chain needs.

enquiries@pofm.com

S U P P LY C H A I N

www.argos .co .uk 7

ARGOS ARGOS

follow suit for instance.

Remaining agileIn the financial year to February 2015, Argos sales were £4.1 billion and it employed some 29,000 people across the business.The company is part of Home Retail Group, the UK’s leading home and general merchandise retailer, which also owns popular firms Homebase and Habitat.

The nature of the Argos business means demand is driven by seasonal events such as Mother’s Day, Easter, Spring bank holiday and of course Christmas. Product popularity also fluctuates dramatically due to weather so in summer, BBQs and garden furniture naturally need to be available in high volumes. Whereas leading up to the festive season, technology

5:00am Amsterdam

3:30am Moscow

3:00pm London

the sense of logistics

P&O Ferrymasters knows how important it is to deliver

your cargo on time, to the right place and in perfect

condition. Your business depends on it and so does our

reputation as a market leader in the provision of integrated

transport solutions for the European industry. Our team of

530 experienced professionals operate from 22 strategic

locations across twelve European countries. They all share

this same customer-focused philosophy and are dedicated

to providing a fi rst class service to all our customers.

This philosophy and experience is complemented by our

unrivalled and increasingly important contract logistics

and freight management solutions, pioneering intermodal

operations, advanced information technology infrastructure

and our own modern and extensive fl eet.

That’s why it makes sense to choose P&O Ferrymasters for

all your supply chain needs.

enquiries@pofm.com

Turnover made by Argos in its last financial year

4.1bn

The Contract Logistics division at P&O Ferrymasters is a European leader in tailor-made transport management solutions. Purpose-developed software supports a team with vast multi-industry 3PL/4PL experience – a unique formula for sustainable supply chain improvements. Argos has been a customer ever since moving to Ireland in 1996. The dedicated P&OFM service provided by Dublin-based personnel includes a transhipment facility at Dublin port – ensuring rapid turnaround of trailers for onward delivery or shipping – and optimised multi-drop scheduling with minimum cage handling. Service back-up is available from the company’s own-assets fleet, while continual improvement is fostered by a knowledge-sharing partnership.

SUPPLIER PROFILEP&O FERRYMASTERS

8 M a y 2 0 1 5

ARGOS

Norbert Dentressangleworking in

partnership with Argosfor 15 years

• WAREHOUSING

• LOGISTICS

• VALUE ADDED SERVICES

• E-FULFILMENT

• FMCG

• RETAIL AND REVERSE

• FOOD AND DRINK: MULTI TEMPERATURE

• CO-PACKING

• SHARED/MULTI-USER SPECIALIST

At Norbert Dentressangle, personal

commitment and responsibility are

central to everything we do.

We dedicate teams of experts who

are responsive to all your business

needs and challenges.

What can

do for you?Norbert Dentressangle

Contact UsLiam McAfee, Business Development Manager

Call 07831 660003

Email Liam.McAfee@norbert-dentressangle.com

Web www.norbert-dentressangle.co.uk

S U P P LY C H A I N

www.argos .co .uk 9

ARGOS ARGOS

products such as HD Televisions, smartphones and iPads prove popular with customers.

Phil Hull, Distribution Director at Argos, said: “Our agility as a business is crucial and key to our ongoing success in the UK retail space. We are very much working on a seven day, 24/7, shortest lead time possible basis to successfully and swiftly complete store replenishment.

“Essentially, the things we are working on are geared towards improving product availability to ensure we are giving the best experience possible to our customers. Having said that, we are also cleverly managing our inventory level to pre-empt seasonal demand peaks, so that we are not tying up excess capital in unused stock in the warehouses and distribution centres.”

Norbert Dentressangleworking in

partnership with Argosfor 15 years

• WAREHOUSING

• LOGISTICS

• VALUE ADDED SERVICES

• E-FULFILMENT

• FMCG

• RETAIL AND REVERSE

• FOOD AND DRINK: MULTI TEMPERATURE

• CO-PACKING

• SHARED/MULTI-USER SPECIALIST

At Norbert Dentressangle, personal

commitment and responsibility are

central to everything we do.

We dedicate teams of experts who

are responsive to all your business

needs and challenges.

What can

do for you?Norbert Dentressangle

Contact UsLiam McAfee, Business Development Manager

Call 07831 660003

Email Liam.McAfee@norbert-dentressangle.com

Web www.norbert-dentressangle.co.uk

“We are very much working on a seven day, 24/7, shortest lead time possible basis to successfully and swiftly complete store replenishment.” - Phil Hull, Distribution Director at Argos

Description of your Services: Norbert Dentressangle is an international player in logistics, transport and air & sea freight with 42,500 staff and a presence in 25 countries. Norbert Dentressangle develops high added value solutions in its three sectors of activity on the European, American, African and Asian continents and places sustainable development at the core of its business. The company offers a complete range of supply chain services to retailers and manufacturers, including dedicated and shared-user warehousing and transport, reverse logistics and asset management, temperature controlled logistics, e-fulfilment solutions and freight forwarding.

SUPPLIER PROFILENORBERT DENTRESSANGLE

1 0

ARGOS

Lean and greenLandy recognised how the prominence of green, environmentally friendly projects could affect the industry as a whole. Although he stated as far as gas mileage with the new Euro 6 trucks goes, it is not just about reducing kilometres on the motorway but rather reducing the overall carbon footprint of the organisation.

He said: “With the fleet, our initiative is to carry on reducing the CO2 footprint over the kilometres, so that means using bigger trailers to fit more products

“Our initiative is to carry on reducing the CO2 footprint over the kilometres, so that means using bigger trailers to fit more products in” – Phil Hull

A new Euro 6 gas-truck at the nearby filling station

S U P P LY C H A I N

www.argos .co .uk 1 1

ARGOS

One of the new models

in, and they are generally light in weight so therefore the payload is not an issue. Subsequently we went for as many of the new semi-trailers as we can as that particular vehicle type, at 15.65 metres, is able to accommodate our needs.

“We can now start to deliver more product per litre of fuel used and that’s what the aim of the game is. That’s what makes you more efficient, filling the cube up as much as you can with more and more product and less fuel to do it.”

The firm is also looking at utilising a range of

1 2 M a y 2 0 1 5

ARGOS

01604 844439enquiries@ismclean.co.ukwww.ismclean.co.uk

Unit 6 & 7 Mere Farm Business Complex, Red House Lane, Hannington, Northampton NN6 9FP

ISM provide nationwide services to the UK’s largest warehouse, production, car park and retail sites, including Argos

At ISM we understand that fi rst impressions last and we make sure that your site is well maintained, clean, safe and secure

Our philosophy is simple we provide high quality services at the right cost so our customers can concentrate on their core business

From Industrial Cleaning Services, Waste Management/Recycling, Security, Building Maintenance and Grounds Maintenance to reception and help desk operation contact us today for a free site services quotation

Our Services

Provider of cleaningsolutions to

passionate about providing quality services

www.ismclean.co.uk/cleaning

ISM is a nationwide facilities services company providing a “new approach” to Industrial Cleaning, Facilities Cleaning, Security, Landscaping and Maintenance. We are passionate about providing well managed support services and multi skilled operators at the right cost.

S U P P LY C H A I N

www.argos .co .uk 1 3

ARGOS ARGOS

urban double-deckers going forward, because where it has restrictions on delivery access, especially with older stores, the company can usually run the same length of stock on another deck, so again Argos can go out with more products and therefore reduce stem mileage.

Scania has stated its delight that Argos has become the first UK operator to put its dedicated gas-powered trucks into operation. This, together with an ever-developing fuel-supply infrastructure, represents a major step forward in terms of combating emissions of greenhouse gas, the truck manufacturer said in a statement.

Thinking smartAnother major decision that has been implemented recently is the way product

01604 844439enquiries@ismclean.co.ukwww.ismclean.co.uk

Unit 6 & 7 Mere Farm Business Complex, Red House Lane, Hannington, Northampton NN6 9FP

ISM provide nationwide services to the UK’s largest warehouse, production, car park and retail sites, including Argos

At ISM we understand that fi rst impressions last and we make sure that your site is well maintained, clean, safe and secure

Our philosophy is simple we provide high quality services at the right cost so our customers can concentrate on their core business

From Industrial Cleaning Services, Waste Management/Recycling, Security, Building Maintenance and Grounds Maintenance to reception and help desk operation contact us today for a free site services quotation

Our Services

Provider of cleaningsolutions to

passionate about providing quality services

www.ismclean.co.uk/cleaning

ISM is a nationwide facilities services company providing a “new approach” to Industrial Cleaning, Facilities Cleaning, Security, Landscaping and Maintenance. We are passionate about providing well managed support services and multi skilled operators at the right cost.

Management: Angus McFadzean (Managing Director)

Address: Units 6&7 Mere Farm Business Complex, Red House Lane, Hannington, Northampton, NN6 9FP

Tel: 01604 844439

Email: enquiries@ismclean.co.uk

Website: www.ismclean.co.uk

SUPPLIER PROFILEISM CLEAN

1 4

ARGOS

repair and refurbishment is handled. Prior to summer 2014 Argos operated a refurbishment and repair service for technology products through a network of third parties. This network was serviced from the organisation’s central returns operation near Burton-upon-Trent, with movements between the operations before finally being shipped to the eBay/Clearance Outlets which Argos has in place for sale.

Following an assessment of the whole operation Argos management concluded that refurbishing products, including non-technology, within its own returns site would have significant benefits, given the scale of the operation and economies of scale this would give the company.

The key Argos benefits being the leverage of

Argos have a return and

refurb space of 70,000 sqf

S U P P LY C H A I N

www.argos .co .uk 1 5

ARGOS

the returns site space with 70,000 square foot made available and a better returns management operation; handling is minimised with stock only handled once before despatching for sale too. Inherent efficiencies are taken advantage of which reduces potential damage or loss in transit, and inventory levels are managed well by mobbing to a weekly production model as opposed to batch processing at remote locations.

Control also improved with stock on site and on core inventory systems with enhanced visibility; and finally product quality feedback gives Argos an opportunity to improve insight on customer/product issues and relay this information back into Quality Assurance and buying teams.

Phil Hull said: “In deciding how to implement our new onsite refurbishment service we recognised we would require expert support and selected Servicecare, part of Clipper Logistics, as our refurbishment partner. Working together Servicecare we established a trial ‘implant’ operation within our returns operation commencing in August 2014. This initial pilot has exceeded our expectations and has given us the confidence to accelerate our plans, and roll this out further this year.

“In summary we believe developing a centre of excellence for refurbishment and repair is a key component to our digital technology strategy and at the same time it will drive out costs and give us an opportunity to enhance our customer’s experience.”

“In summary we believe developing a centre of excellence for refurbishment and repair is a key component to our digital technology strategy and at the same time it will drive out costs and give us an opportunity to enhance our customer’s experience.” - Phil Hull

1 6 M a y 2 0 1 5

ARGOS

Offer your customers tailored delivery and returns services online Find out more at parcelforce.com/select

Let your customers

whenthey want

their parcelsSameday, next day, 2 working

days, Saturday or Sunday

wherethey want

their parcelsHome, work, neighbour,

local Post Office® branch, safe place, Parcelforce depot

or Click & Collect®

howthey want

their parcelsChange the delivery day or place

with interactive messages, receive a one-hour time-slot

notification and make returns easy

Parcelforce Worldwide and the Parcelforce Worldwide Globe Logo are trade marks of Royal Mail Group Ltd. © Royal Mail Group Ltd 2015. All rights reserved.

S U P P LY C H A I N

www.argos .co .uk 1 7

ARGOS ARGOS

Landy added: “Our previous operating model meant products would go out to third parties, who would re-service it, bring it back into our supply chain and resell that through an eBay channel or other clearance channels.

“Now we’ve changed that. Where it is totally onsite refurbishment it has taken out the cost of working with third parties and moving products around the country, and the time that that product is spent out of circulation in that repair route. So when coupled with our latest plans with Sainsbury’s it means product availability and customer convenience could not be better.”

Digital-led futureAlongside the partnership with eBay, another business relationship has been put in place

Offer your customers tailored delivery and returns services online Find out more at parcelforce.com/select

Let your customers

whenthey want

their parcelsSameday, next day, 2 working

days, Saturday or Sunday

wherethey want

their parcelsHome, work, neighbour,

local Post Office® branch, safe place, Parcelforce depot

or Click & Collect®

howthey want

their parcelsChange the delivery day or place

with interactive messages, receive a one-hour time-slot

notification and make returns easy

Parcelforce Worldwide and the Parcelforce Worldwide Globe Logo are trade marks of Royal Mail Group Ltd. © Royal Mail Group Ltd 2015. All rights reserved.

Ebay collection

point in Argos

As a leading provider of express delivery services, we are proud to have worked with Argos for over two years delivering items to thousands of their customers. Our extensive range of services ensures we can provide flexible secure express deliveries to meet all of their customers’ needs. Parcelforce Select offers tailored delivery and returns services, enabling customers to manage their parcels after they order and even change their mind on the day of delivery. This is backed by our reputation for Great British Delivery and exceptional quality of service.

Website: parcelforce.com

SUPPLIER PROFILEPARCELFORCE WORLDWIDE

1 8

ARGOS

with Sainsbury’s supermarket. Argos, as the UK’s leading general merchandise retailer and Sainsbury’s, the UK’s second largest grocer, have teamed up to open 10 new Argos digital stores within existing Sainsbury’s supermarkets this year. This will bring extra choice and convenience to Sainsbury’s and Argos’ customers who will have access to the combined ranges in the convenience of a Sainsbury’s supermarket.

These new format digital stores will provide customers with a choice of over 20,000 non-grocery products which they can either buy instantly in store via tablets, or reserve online for easy collection within hours, the same or the following day. An extended range of around 40,000 products can also be ordered in store for home delivery.

Upon announcing this new way to reach the end user, John Walden, Chief Executive of Home Retail Group, said: “Our new distribution model allows us to provide customers in any Argos location with a choice of around 20,000 lines within hours, regardless of the size or stocking capacity of the store. This strategic capability has opened up options for a variety of new Argos stores and formats, and the possibility that we can now cost-effectively reach more customers and neighbourhoods with an Argos presence. I look forward to the results of the 10 store programme with Sainsbury’s and to understanding the full potential of this exciting opportunity.”

Argos continues to be the UK’s largest high

Argos is partnering

with both ebay and

Sainsburys to bring

extra choice and

covenience to its

customers

“Our new distribution model allows us to provide customers in any Argos location with a choice of around 20,000 lines within hours, regardless of the size or stocking capacity of the store.”- John Walden, Chief

Executive of Home Retail Group

OUR BUSINESS

YOUR SUCCESSDHL are global logistics leader and in the UK are provider of choice to 50 retailers. We have significant infrastructure and operational presence in the retail market, with a portfolio of services that spans everything from supply chain strategy and network design to in-store logistics. We work for a wide variety of retailers, from large grocers to convenience stores, e-retailers to department stores; DIY, electrical and furniture retailers. No wonder so many leading retailers choose us as a trusted logistics provider. Website: For more information about our business please visit www.dhl.com or scan our QR code

As the world’s leading independent container shipping line, at MSC we pride ourselves in delivering global services, locally.

Our UK services offer an extensive MSC feeder network, nine regional ports of call and a dedicated landside fleet of road and rail resource, all offering our customers greater choice, flexibility and efficiency.

With four regional offices throughout the UK and a dedicated local team of over 500 people, we’re committed to tailoring our global shipping and logistics services to find the best solutions for you.

For more information please contact our local team:

+44 1473 27 7777 or hello@mscuk.com

MSC.com

ARGOS

2 0

ARGOS

street retailer online with around 121 million customer transactions a year through its stores and over 900 million website and app visits in the 12 months to February 2015.  Customers can take advantage of Argos’ convenient Check & Reserve service available through its network of 755 stores across the UK and Republic of Ireland.

It is clear to see that Argos is not standing still and waiting for the future to come to it; rather it is embracing a new strategy that keeps the ongoing global digital revolution as a core consideration. The company is also providing the opportunity for all levels of staff to build on their existing skills on the job, through initiating training in a form where employees are able to achieve an NVQ in lean or

Aerial view of Argos site

S U P P LY C H A I N

www.argos .co .uk 2 1

ARGOS

continuous improvement.Commenting on the organisation’s reasoning

behind the move to invest in gas powered transportation, Landy pointed out it was important to be aware of the manufacturer’s own plans. He said: “Up until now you couldn’t buy a manufacturer-made gas lorry off of the production line: you would buy a normal diesel lorry and it would be converted by an after-market firm. For us, that suggested that if manufacturers aren’t behind it, should we really be doing it? Now Scania have this 100 percent gas truck coming off their production line. If they are supporting us in our green initiatives this way, it is probably the right thing to do now.” said Landy.

“This is the beginning of a sea-change I think, and a lot of fleet operators will start to take it much more seriously as people follow the lead. But without people purchasing them Scania won’t produce the trucks. It has been a move together but I think it is the right one.”

Hull concluded: “As we see the volume of these environmentally-friendly vehicles start to come into the industry, the price changes, the market changes and it becomes more viable and realistic to many operators. We are proud to be pioneering this new form of distribution and we hope to continue to innovate for the benefit of our customers.”

It is clear to see Argos is set to stay ahead of the industry curve as it is closer to the end user than ever before.

Company Information

I N D U S T RY

SUPPLY CHAIN

H E A D Q U A RT E R S

Milton Keynes,

Buckinghamshire, UK

F O U N D E D

1972

E M P L O Y E E S

29,000

R E V E N U E

£4.1billion

P R O D U C T S /

S E R V I C E S

Retail

ARGOS

489-499 Avebury Boulevard, Milton Keynes, Buckinghamshire, England, MK9 2NW

Tel. +44 (0)845 124 0044 / Fax. +44 (0)1908 692 301

info@argos.co.uk / www.argos.co.uk